The Hindu Business Line : BG plans to raise output from Panna, Mukta, Tapti fields

B(i)G plans
BG Exploration and ONGC have signed a production-sharing contract for the KG-OSN-2004/1 block.
BG would invest $30 million to $50 million on city gas distribution networks in India over the next 5 to 6 years.

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New Delhi March 2 BG India, the Indian arm of British energy major BG Group Plc, is looking at enhancing production from the joint venture Panna, Mukta, Tapti (PMT) fields, Gujarat offshore.

Mr William Adamson, Managing Director, BG India, said: "Gas output from Tapti field is expected to go up to 17-18 million standard cubic metre per day (mmscmd) by August from the current 11 mmscmd."

The joint venture — BG, ONGC and Reliance Industries — is also hoping to increase the crude oil production. The current crude oil production from Panna, Mukta fields is 40,000 barrels per day.

Sharing Contract

The partners have undertaken some activity in the two fields and the prospects look encouraging. BG Exploration & Production Ltd (BGEPIL) has 30 per cent interest in the joint venture that operates the offshore PMT fields. Other partners in the fields include Reliance Industries (30 per cent) and ONGC (40 per cent).

Speaking to Business Line after signing the production-sharing contract (PSC) with the Government for an offshore block awarded to BGEPIL along with ONGC in the recently concluded New Exploration Licensing Policy (NELP), Mr Adamson said, the joint venture is working on a project in mid-Tapti field for enhancing gas production.

On the kind of investments BG India was planning for its activities in India, Mr Adamson said, "Since we came into India we have invested virtually a billion dollars. On a reasonable assumption across upstream and downstream business, you start to get an equivalent figure of about $1 billion over the next five years."

Gas Distribution

BGEPIL and ONGC today signed a PSC for the block KG-OSN-2004/1, which was awarded in the recent NELP VI. BGEPIL has a 45 per cent stake in the block with partner ONGC, which holds a 55 per cent interest and operatorship. "This award adds to our current portfolio of upstream assets and marks the beginning of BG India's diversification into hydrocarbon region in the East Coast," he said.

As regards BG India's plans for city gas distribution activity, he said BG would invest $30 million to $50 million on city gas distribution networks in India over the next 5 to 6 years.